HomeMy WebLinkAbout1B, Johanna Marsh Purchase
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Request for Council Action
Prepared By: Michelle Olson,
Parks and Recreation Manager
Council Work Session Date: October 20, 2008
Staff is seeking guidance on how to proceed with a request from Mr. Clifford Nimis to purchase a
portion of Johanna Marsh.
Budgeted Amount:
N/A
Actual Amount:
N/A
Funding Source:
N/A
Background:
Mr. Clifford Nimis of 1485 Glenhill Road has approached the City on a desire to purchase the piece of
land directly behind his house (Map is attached) which is now designated as Johanna Marsh.
Supporting Documents:
1. Map of Johanna Marsh
2. Location Map for Mr. Clifford Nimis - 1485 Glenhill Road
3. Memo from Michelle Olson, Parks and Recreation Manager dated October 20, 2008
4. Information on Conservation Easements
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MEMORANDUM
DATE: October 20, 2008
TO: Honorable Mayor and City Council
Ron Moorse, City Administrator
FROM: Michelle Olson, Parks and Recreation Manager
SUBJECT: Johanna Marsh
BACKGROUND
Mr. Clifford Nimis of 1485 Glenhill Road has approached the City on a desire to purchase the
piece of land directly behind his house (Map is attached) which is now designated as Johanna
Marsh. He has offered to purchase the marsh area minus the land that the tennis court sits on.
In discussions with Mr. Nimis, his main goal of purchasing this piece of property is to ensure
that it remains in its natural state. Staff did meet with Mr. Nimis at his property and did explain
that this piece of property is unbuildable and that the City has no intention of developing or
changing this site. However, he feels the only way to ensure this is ifhe pursues purchasing the
property. The City did explore the possibility of selling this piece of land in October of 2007
when the decision was made to designate this piece of land as a public park. Staff has
identified three options to consider for this situation:
1. The City could order an appraisal of the land and offer to sell or convey that portion to
Mr. Clifford Nimis.
Staff consulted the City Attorney on this option. He confirmed that the City has the authority to
sell excess property (M.S. 412.211). The property was conveyed to the City in 1993 with no
restrictions. However, prior to the conveyance of all or part of the Johanna Marsh property, the
City must do one of the following (MS 462.356, Subd. 2):
1. The Planning Commission should review the proposed transaction and prepare
findings for the City Council, indicating whether the disposition of the park
property complies with the City's Comprehensive Plan; or
2. The City Council should adopt a resolution indicating that in its judgement, the
proposed disposition has no relationship to the City's Comprehensive Plan.
This type of resolution requires four affirmative votes.
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Conservation Easement08.doc
Johanna Marsh - Conservation Easement
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The City does not have the authority to convey property for a nominal consideration, unless the
conveyance is to another governmental unit. The Attorney General has determined that cities
cannot convey land for a nominal consideration to a non-profit organization.
Staff recommends that if the City Council would want to pursue this option, they would want to
make sure that Mr. Nimis agrees to pay for the appraisal of the property.
2. The City could put a Conservation Easement on this land.
A conservation easement is a set of restrictions a landowner voluntarily places on his or her
property in order to preserve its conservation values. The conservation values of the property
and the restrictions created to preserve those values, along with the rights reserved by the
landowner, are detailed in a legal document which is filed with the county land records. A
conservation easement is conveyed to a government agency or nonprofit conservation
organization qualified to hold and enforce easements. Most conservation easements are
perpetual. They apply to the current owner and all future landowners, permanently protecting
the property. Staffhas included handouts on conservation easements for your information.
3. The City could put a Conservation Easement on this land and then sell the land to Mr.
Nimis.
This would be an option the City could choose to ensure that if the land was sold, Mr. Nimis
and all future landowners would have restrictions on developing this site.
STAFF RECOMMENDATION
Staff has reviewed the options above and feels that the most logical solution is placing a
Conservation Easement on this property. Staff is seeking guidance on how to proceed.
Minnesota Land Trust: Conservation Programs
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About Us I Agenda I Programs I News & Events I Support Our Work I Resources I Contact Us
Tools ~ Conservation Easements
Through conservation easements, the Minnesota Land Trust works in partnership with
interested landowners and communities across the state to preserve important natural
and scenic resources by limiting the use and development of their land. Conservation
easements offer landowners the opportunity to retain and enjoy their land while knowing
it will be safeguarded for future generations.
. What is a conservation easement?
. What types of land can be protected through conservation easements?
. What restrictions are included in a conservation easement?
. What are the effects of a conservation easement on a landowner's property
rights?
. What obligations come with a conservation easement?
. What are the benefits of a conservation easement?
What is a conservation easement?
A conservation easement is ~ set of restrictions a landowner voluntarily places on his or
her property in order to preserve its conservation values. The conservation values of the
property and the restrictions created to preserve those values, along with the rights
reserved by the landowner, are detailed in a legal document known as a conservation
easement. This document is filed with the local county land records.
A conservation easement is conveyed to a government agency or nonprofit conservation
organization qualified to hold and enforce easements. Most conservation easements-
including all of those held by the Minnesota Land Trust-are perpetual. They apply to the
current owner and all future landowners, permanently protecting the property.
Each conservation easement is unique, specifically tailored to the particular land being
protected as well as to the particular situation of the landowner.
Return to the list of questions
What types of land can be protected through conservation easements?
Conservation easements can be used to protect a variety of lands, but the Minnesota
Land Trust concentrates its efforts on:
natural habitat for wildlife, fish and plants such as prairies, forests,
blufflands, or wetlands;
lakeshore, rivers and streams, the natural features and systems with which
Minnesota is so identified; and
scenic landscapes, particularly those with local community, cultural or
http://www .mnland. org/prog -ce.html
10/15/2008
Minnesota Land Trust: Conservation Programs
historic significance.
Page 2 of3
Not all properties are suitable for protection through conservation easements with the
Minnesota Land Trust. Whenever possible we will provide landowners with information
on other options.
Return to the list of questions
What restrictions are included in a conservation easement?
First, conservation values are defined and then restrictions are created to protect those
values. Restrictions may apply to all of a landowner's property or to only a portion of it.
Typically, easements address subdivision, commercial or industrial uses, mining,
construction of buildings or roads, utilities, disturbance of the vegetation or topography
and any activities on the property that might interfere with the conservation purpose for
the easement.
For example, an easement preserving rare woodland habitat may require that the
property be left entirely in its natural state, prohibiting all development. Or, to protect a
lake or stream, an easement may allow limited inland construction of buildings or trails
while restricting such activities along the more fragile shoreline. Some easements may
permit continued farming or limited timbering. Others may provide for enhancement of
wildlife habitat or restoration of native prairie.
Return to the list of questions
What are the effects of a conservation easement on a landowner's property rights?
A landowner retains all rights to the property not specifically restricted or relinquished by
the easement. The landowner still owns the land and has the right to use it for any
purpose that is consistent with the easement, to sell, to transfer or to leave it through a
will. Typically, landowners also retain the right to restrict public access.
Return to the list of questions
What obligations come with a conservation easement?
Landowner: The landowner remains responsible for the land-for its maintenance and
upkeep, for paying taxes and for otherwise meeting the typical obligations of land
ownership. Conservation easements add only a few further requirements:
· To notify the Minnesota Land Trust of proposed changes to the property
. To allow annual monitoring visits
· To notify the Minnesota Land Trust when selling or transferring the property
. To comply with the restrictions in the easement
Minnesota Land Trust: The Minnesota Land Trust is obligated to oversee and enforce
the terms of the easement. A representative will periodically schedule visits to the
property to make sure the land continues to be used according to the easement. If
necessary, the Minnesota Land Trust will legally defend the easement in the event of a
violation. The Land Trust does not otherwise have the right to use the property without
the landowner's permission.
Return to the list of questions
http://www .mnland. org/prog -ce.html
10/15/2008
Minnesota Land Trust: Conservation Programs
Page 3 of3
What are the benefits of a conservation easement?
Land Protection-Conservation easements are a cost effective tool to protect
Minnesota's increasingly threatened land and water resources, preserving wildlife
habitat, safeguarding our waters and capturing scenic vistas for today and tomorrow.
Living Legacy-Conservation easements give landowners peace of mind, knowing that
their commitment to protecting their "special places" will be forever respected and remain
an enduring legacy for their family and their community.
Common Good-Conservation easements allow landowners to contribute to local
communities and to the State by protecting the land and water resources that provide us
with our cherished quality of life.
Financial Benefits-Conservation easements may reduce a landowner's tax obligations
in number of ways:
· Income Taxes: As with other charitable contributions, the donation of a
conservation easement under certain circumstances may allow the landowner to
claim a federal income tax deduction for the value of the easement.
. Estate taxes: A gift of a conservation easement may also reduce federal estate
taxes, making this an effective way to transfer land to the next generation with its
natural features intact.
· Property Taxes: An easement that reduces the value of the land may result in
lowered annual property taxes.
NOTE: The rules governing all of these potential tax savings are complex and require the
advice of professional advisors.
Return to the list of questions
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Conservation Easements - What are Conservation Easements? Definition of Conservation... Page 1 of 1
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Conservation Easements
What are Conservation Easements?
A conservation easement is a restriction placed on a piece of property to
protect its associated resources.
The easement is either voluntarily donated or sold by the landowner and
constitutes a legally binding agreement that limits certain types of uses or
prevents development from taking place on the land in perpetuity while the land
remains in private hands.
Conservation easements protect land for future generations while allowing
owners to retain many private property rights and to live on and use their land, at
the same time potentially providing them with tax benefits.
In a conservation easement, a landowner voluntarily agrees to sell or donate
certain rights associated with his or her property - often the right to subdivide or
develop - and a private organization or public agency agrees to hold the right to
enforce the landowner's promise not to exercise those rights. In essence, the
rights are forfeited and no longer exist.
:Downloads'
Conservation Easements:
Conserving land. Water and
a Way of life
(PDF, 200 KB, new window)
Conservation Easement
Workinq Group Report
(PDF, 234 KB, new window)
South Carolina Conservation
Easements Audit
(March 21, 2005: PDF, 241
KB, new window)
Conservation easements
in the United States
Learn more about
easements across the
count
An easement selectively targets only those rights necessary to protect specific
conservation values, such as water quality or migration routes, and is individually
tailored to meet a landowner's needs. Because the land remains in private ownership, with the remainder of the rights
intact, an easement property continues to provide economic benefits for the area in the form of jobs, economic activity
and property taxes.
A conservation easement is legally binding, whether the property is sold or passed on to heirs. Because use is
permanently restricted, land subject to a conservation easement may be worth less on the open market than
comparable unrestricted and developable parcels. Sometimes conservation easements will enable the landowner to
qualify for tax benefits in compliance with Internal Revenue Service rules.
For More Information:
· Press Release: Conservancy's New York State Director Appointed to Commission Overseeing Quality of
land Conservation
Henry Tepper, Director of The Nature Conservancy's New York Chapter, was recently appointed by the Land Trust
Alliance to a new commission established to ensure the quality of land conservation.
· Press Release: Outdoor Recreation and Conservation Groups Urge Congress To Preserve Vital
Conservation Tax Incentive Tool
Two dozen leading national hunting, fishing, outdoor recreation and conservation groups have released a letter to
Congress expressing their strong support for conservation tax incentives for conservation easements and
highlighting the vital role easements play in virtually all outdoor recreation in the United States.
· Press Release: The Nature Conservancy Releases legislative Proposals to Strengthen Conservation
Easements
The Nature Conservancy released a set of legislative proposals designed to strengthen the laws and regulations
governing conservation easements and help end abuses of this critically important conservation tool.
Copyright @ 2008 The Nature Conservancy
http://www .nature. org/ aboutus/howweworkl conservationmethods/privatelands/ conservati... 1 0/15/2008